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Q:
What is the difference between "Pre-Qualified and
"Pre-Approved"?
A: A pre-qualification consists
of a discussion between a home buyer and a loan officer.
The loan officer collects basic information regarding the
customer's income, monthly debts, credit history and assets, and
then uses this information to calculate an estimated mortgage amount
for the home buyer. The
pre-qualification is not a full mortgage approval, but estimates
what a home buyer can afford.
A pre-approval, on the other hand, is a comprehensive approach using
basic information as well as electronic credit reporting.
Pre-approvals, in most cases, are true mortgage commitments.
The lender commits to financing your home and indicates that
total mortgage amount available to you
Q: What
types of mortgage programs are offered?
A: Currently,
there are over 50 different mortgage products available, including:
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15, 20 and
30-year fixed rate loans
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adjustable rate
loans
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new
construction financing
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VA and FHA
loans
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5 and 7-year
balloon loans
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and many more.
Q:
How long does it take to process a mortgage application?
A:
Usually about 45 to 60 days, although it can take as few as
seven days and as long as 90 days for transactions.
The actual time depends on how quickly the lender can get an
appraisal of the property, a credit report and verification of
employment and bank accounts.
Q: What documents will I have to provide?
A:
Be prepared to provide verification of income (including a
pay stub and recent tax returns), bank account numbers and details
on your long-term debt (credit cards, auto loans, child support,
etc.). If you're self
employed you may also be required to provide financial statements
for your business.
In recent years, lenders have been required to obtain more specific
information from borrowers in order to package and sell loans to
investors. If you were lending someone such a large amount of money,
you'd want detailed financial information.
Q:
Could anything delay the approval of my loan? A:
If you provide the lender with complete, accurate information,
everything should go smoothly. You
may face a delay if the lender discovers credit problems -= a
history of late payments or non-payments of debts, or a tax
lien. You may then be required to submit additional
explanations or clarifications. You
should also be sure to notify your lender if your personal or
financial status changes between the time you submit an application
and the time it's funded. If you change jobs, get an increase
(or decrease) in salary, incur additional debt or change your
martial status, let the lender know promptly. You may be
delayed if the home you selected fails to appraise for the agreed
purchase price. Q:
What's included in my house payment? A:
Principle and interest of your loan. Depending on the terms of
your loan, the payment also may include hazard (homeowners)
insurance, mortgage insurance and property taxes. Q:
Can I pay those other things separately? A:
Not if it's a FHA or VA-insured loan. With most other
loans, you can pay your own taxes and insurance if you borrowed no
more then 80% of the purchase price or appraised value of your
home. Check with your lender to be sure. Q:
What do the closing costs include? A:
Closing costs processing and administration of your loan.
In addition to a loan fee, you'll usually be asked to prepay
interest charges, to cover the partial month in which you close, and
impounds for property taxes, hazard insurance and mortgage
insurance. Q:
When do the mortgage payments start? A:
Usually about 30 days after closing. The actual date of
your first payment will be included in your closing documents. MORE
QUESTIONS?
Call
your local Sales Consultant, Mark Peters Realty, Inc.
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